Power distribution systems generally are controlled to match supply of power from power generation units to demand for power from electrical loads on the power distribution system. During periods of time when current demand for power exceeds current supply of power, additional generation units may need to be activated to supply all of the demanded power. If the additional power cannot be supplied, then brownout or blackout conditions may result, where some or all of the loads demanding power are not supplied with demanded power. In general operators of power distribution systems and utility companies try to avoid brownout or blackout conditions.
Power distribution systems may issue a demand response load control (DRLC) command if the system senses or anticipates a power deficit. In other words, the power distribution system may determine based on historical usage if there is likely to be greater demand than supply and if such a condition is anticipated, may issue a DRLC. The DRLC may be transmitted to electrical power consumers and constituent smart loads and smart power controllers throughout the power distribution system. Upon receiving a DRLC, a smart load, such as a smart appliance, may automatically curtail energy usage based on receiving the DRLC. The curtailment may involve changing the appliance cycle of operation, implementing a delayed start, changing a set point, or not operating the appliance. Such a power distribution system is often referred to as a smart grid.
Utility companies, power generators, or power distributors may benefit from having customers curtail energy usage during times of peak loads, as doing so can balance load demand. In other words, when customers curtail energy usage during times of high energy usage based on the utility company sending a DRLC, the power generator may have energy usage that has a reduced peak demand, and possibly an increased through demand. In general, having a more balanced load demand can allow the utility to have a higher overall utilization of their power generating assets and therefore improve their return on invested assets in a generally capital intensive industry.
Utility companies often provide incentives to customers for participating in programs where the utility can have some control in reducing energy usage at the end customer's premises. Such programs may provide financial incentive based on a customer's participation in the program.